Arm CEO: The company is developing its own chips.

British semiconductor IP giant Arm announced its lower-than-expected forecast for the next quarter on Wednesday local time, partly due to Arm's plan to invest some of its profits in manufacturing its own chips and other components, disappointing investors. This also led to a 8.65% drop in Arm's stock price in after-hours trading on Wednesday. Arm CEO Rene Haas noted that the company is investing in developing its own chips, marking a significant shift in the company's business model of licensing chip IP designs to other companies.